The crypto market has been filled with so much volatility over the past few months. Bitcoin price barely rose 1% to $20,373; Prices for Ethereum and other altcoins are still in the dump. Crypto community members and experts are predicting another crisis in October.
Amid the market’s ups and downs, the industry is expected to record three significant events this week. Perhaps the market will experience more volatility in the coming months, given the events that have taken place in the industry over the previous months.
The merger could affect the crypto market
This week comes the most intensive upgrade in Ethereum history, known as the merger. The merger is expected to take place around September 15.
During the merger, the Ethereum blockchain will change from proof-of-work (POW) to proof-of-stake (POS). Ethereum mining rewards are around 13,000 ETH per day in the current POW system. After the merger, the staking rewards will only become around 1,600 ETH per day.
According to a blog post per the Ethereum Foundation on the official website, ETH issuance will drop 90% after the merger. ETH burning will occur at an average gas price of 19 gwei, and 1,600 ETH will be burned daily, reducing net ETH inflation to zero.
The countdown to the time of the merger upgrade is one, but the inevitable fact is the increase in market volatility after the merger.
Mt. Gox Trustee Sets Deadline for $3 Billion BTC Payout
Nobuak Kobayashi, the administrator of Mt. Gox, Mt. Gox’s former client, set a deadline of two weeks.
The Mt. Gox platform was affected by a hack in 2011 and around 840,000 BTC was stolen. At that time, Mt. Gox was in charge of 70% of BTC operations globally.
After three years, the company recovered up to 140,000 BTC, which became the subject of litigation. The refund process has been ongoing ever since. Mt. Gox creditors are prohibited from transferring, assigning or disposing of their rehabilitation claims after September 15.
Nobuak Kokayashi said he will no longer accept requests for transfer of claims after the set date.
However, some claimants suspect that the refund might not happen. According to one of the creditors, the trustee is not yet ready for the supposed payment. He noted that the trustee has not yet collected KYC.
There is speculation that refunding BTC holdings to claimants could increase market volatility after September 15.
CPI release may increase market volatility
Expectations in the crypto market are high as CPI numbers are expected to arrive this week. The CPI is a consumer protection index used in the United States to measure commodity inflation rates, but is not used for all products. As a result, a positive CPI release often increases market volatility.
The bitcoin price returned to $20,373, an increase of about 1% in price over the past 24 hours. There is a good chance that a positive CPI will add to the recent rally in BTC and possibly other altcoins.
Featured image from Pixabay, chart from TradingView.com